What Kills a Deal After a Term Sheet Is Issued
Operational gaps and unverified claims are the real deal killers after signature.
Priya Subramaniam
Section
6 stories in VC Decision-Making.
Operational gaps and unverified claims are the real deal killers after signature.
Asymmetric payoffs and competition force VCs to decide faster than diligence demands.
Founders can distinguish fund rejections based on startup gaps versus investor constraints.
Weak prep signals founder conviction hasn't survived contact with skeptics.
Investors often decide deals on reference calls the founder never sees.
Founders must plan for two separate fundraising timelines or risk running out of cash at each stage.